Moving to Texas in 2025: Complete Cost of Living & Tax Guide
No wage tax—but what about property tax, insurance, utilities, and tolls? Use our method to compare Texas cities and find your break-even salary.
Pairs perfectly with EverydayBudd's Cost of Living, Salary / Take-Home, and Mortgage calculators.
Introduction
Texas offers no state income tax, big job markets (tech, energy, healthcare, logistics), and diverse cities from Austin and Dallas–Fort Worth to Houston and San Antonio. But costs vary widely by county and neighborhood—especially property taxes and home/auto insurance. This guide gives you a repeatable method to compare Texas cities against your current location so you can move with confidence.
Don't compare gross salary or list rent alone. Compare after-tax income minus Texas-specific costs(property tax, insurance, utilities, tolls, HOA/MUD taxes). Use our calculators to find your break-even salary and best city fit.
Understanding the Basics
Key Terms Explained
- No State Income Tax: Texas does not tax wages. You still pay federal income tax and FICA.
- Sales Tax: State base + local add-ons; many cities total up to ~8.25% at checkout.
- Property Tax & Appraised Value: Counties tax appraised value × combined local rates (county/city/school/MUD). Effective rates vary by neighborhood.
- Homestead Exemption: Primary-residence relief and appraisal-growth limits; file after you move in.
- MUD/SUD/PID: Special districts (often in new suburbs) with extra line-item taxes/assessments—check the property tax statement.
- Home & Auto Insurance: Wind/hail, flood risk, and urban traffic can make premiums higher than expected.
- Electricity Market: Many ZIPs have retail choice (shop plans); others use municipal/co-op utilities.
- Toll Roads: DFW, Austin, Houston have extensive toll networks—budget for tags if you'll commute by car.
Step-by-Step Guide
Use this checklist with the Cost of Living and Mortgage calculators for apples-to-apples comparisons.
1) Pick cities and set a target salary
Choose 2–3 Texas metros (e.g., Austin, DFW, Houston, San Antonio). Enter your offer or target salary and filing status in the Take-Home calculator (remember: no TX wage tax).
2) Model housing the Texas way
- Renting: Price by neighborhood tier (downtown vs inner-ring vs suburbs). Add utilities, parking, pet rent.
- Buying: Use the Mortgage calculator with realistic property tax (ask for last year's bill and expect adjustments to your purchase price), homeowners insurance, HOA, and—if applicable—MUD/PID taxes.
3) Add recurring Texas costs
Sales tax on purchases; home insurance (wind/hail deductible), flood insurance if in a floodplain; auto insurance, inspections/registration, toll tag budget; electricity plan by kWh and usage; childcare/school differences.
4) Compare net monthly surplus
For each city, compute: after-tax income − total monthly expenses = surplus. Sort by highest surplus and lifestyle fit.
5) Run scenario tests
Rent vs buy • roommates vs solo • car-heavy suburb vs urban core • commute with vs without tolls. Test ±10–15% changes to home price, insurance, or utilities to see sensitivity.
6) Negotiate your move
Use your model to request relocation credits, temporary housing, closing-cost help, or a rate buydown if buying.
Model Your Texas Move with Real Numbers
After-tax income, housing + property tax, insurance, utilities, and tolls—side by side.
Advanced Strategies
- File Homestead ASAP: Lowers taxable value for your primary residence and can cap future appraisal increases (subject to rules).
- Appeal/Protest Appraisals: Many counties allow annual protests—prepare comps and evidence after your first bill arrives.
- Mind the District Lines: Newer subdivisions may carry MUD/PID taxes—compare total tax rate, not just price.
- Insurance Shopping: Quote wind/hail deductibles and consider impact-resistant roofing credits; bundle home + auto.
- Electricity Plan Fit: In retail-choice areas, pick plans that match your usage curve (flat-rate vs time-of-use).
- Toll Optimization: Map a toll-free route before signing a lease; everyday toll commutes can equal $100–$250+/mo.
- Remote Work Residency: TX residency can be favorable for remote workers—confirm employer withholding and any out-of-state nexus rules.
Common Mistakes to Avoid
- Assuming "no income tax" = cheapest. Property tax + insurance + utilities can offset wage-tax savings.
- Using last owner's tax bill at face value—your purchase price can reset appraised value upward.
- Ignoring special districts—MUD/PID assessments add hundreds per month in some areas.
- Under-budgeting for cars—long commutes, tolls, and higher auto premiums surprise many movers.
- Skipping flood checks—flood insurance is separate and may be required by lenders.
- Choosing the wrong electric plan for your usage pattern.
- Not filing Homestead or protesting when justified—leaves money on the table.
Frequently Asked Questions
Frequently Asked Questions
Conclusion & Next Steps
Texas can stretch your paycheck—but only if you model all-in costs. Compare after-tax income, housing + property tax, insurance, utilities, and transportation before you sign.
Action Items
- Enter your current city and target Texas metros in the Cost of Living tool.
- Price rent vs buy with actual property tax, insurance, HOA/MUD numbers in the Mortgage calculator.
- Map your commute and estimate tolls/fuel/parking.
- If buying, plan to file Homestead and note the appraisal protest window.
- Use your model to negotiate relocation or salary.
Related Tools & Guides
Ready to Compare Texas Cities?
Run side-by-side comparisons, then shortlist neighborhoods with the best monthly surplus.
References
- Texas Comptroller — state & local taxes, homestead exemptions
- County Appraisal Districts — appraised value, protest timelines
- Texas Department of Insurance — home & auto guidance
- FEMA Flood Map Service Center — flood zones & NFIP basics
- Local MPOs/TxDOT — toll road information
- Retail Electric Provider portals — plan comparisons in deregulated areas